Cryptocurrency derivatives trading has become increasingly popular, and understanding how to configure your contract trading mode is essential for maximizing performance and managing risk. On OKX, one of the world’s leading crypto exchanges, users can choose between two primary contract position modes: One-Way Mode and Hedged Mode (Two-Way). This guide walks you through everything you need to know about setting up your preferred trading mode directly from the OKX mobile app—no prior experience required.
👉 Discover how to optimize your trading strategy with advanced position settings on OKX.
Understanding Contract Position Modes on OKX
Before diving into setup steps, it's crucial to understand the core difference between the two available modes and how they impact your trading behavior.
What Is Hedged Mode (Two-Way Positioning)?
Hedged Mode allows traders to hold both long and short positions simultaneously for the same contract instrument. For example:
- You can open a long position on BTC/USDT futures expecting price appreciation.
- At the same time, you can open a short position anticipating downward volatility.
This flexibility enables strategic hedging—balancing exposure during uncertain market conditions. In OKX’s Unified Account model:
- Under single-currency margin, derivatives with the same settlement currency share margin.
- With cross-currency margin, all assets are converted into USD value, allowing full cross-product margin utilization.
The key benefit? Profit and loss from opposing positions can offset each other, reducing overall margin pressure and lowering liquidation risk. It also improves capital efficiency by minimizing idle funds.
However, note that PnL offsetting only works in cross-margin (full margin) mode, not isolated margin. In isolated mode, each position operates independently.
Advantages of Hedged Mode
- Risk diversification through simultaneous long/short exposure
- Reduced liquidation risk via盈亏抵消 (PnL offset)
- Enhanced capital utilization in volatile markets
Risks to Consider
- Requires strong market analysis skills
- Potential for amplified losses if both positions move against you
- More complex position management
What Is One-Way Mode?
In One-Way Mode, traders can maintain only one directional position at a time per contract: either long or short—not both.
For instance:
- If you're bullish, you go long and wait for prices to rise before closing.
- If bearish, you short-sell and buy back later at a lower price.
This model suits straightforward directional bets based on trend analysis.
Who Should Use One-Way Mode?
- Trend followers: Traders confident in sustained bullish or bearish trends
- High-risk takers: Those willing to accept greater drawdowns for higher reward potential
- Beginners: New traders who prefer simplified workflows without dual-position complexity
- Clarity-focused traders: Investors seeking clean, linear decision-making processes
While easier to manage, this mode offers no built-in hedging mechanism. A wrong prediction leads to full exposure to downside risk until exit.
How to Change Contract Mode on OKX Mobile App
Follow these step-by-step instructions to switch between One-Way and Hedged modes:
Step 1: Open the OKX App and Navigate to Contracts
Launch the OKX mobile application and tap the "Trade" tab at the bottom of the screen. Then select "Contracts" from the available options.
Step 2: Access Trading Settings
On the contract trading page, locate the gear icon (⚙️) or "More" button in the top-right corner. Tap it to reveal additional functions.
Step 3: Enter Position Mode Configuration
From the dropdown menu, choose "Trading Settings", then click on "Position Mode".
Step 4: Select Your Preferred Mode
You’ll now see two options:
- One-Way Mode
- Hedged Mode
Tap your desired option. The system will prompt confirmation. Once confirmed, the change takes effect immediately.
⚠️ Important Note: You cannot modify your position mode if you have active positions or pending orders. Close all open trades and cancel unfilled orders first.
👉 Learn how professional traders use position modes to maximize returns on OKX.
Frequently Asked Questions (FAQ)
Q: Can I switch between One-Way and Hedged Mode anytime?
A: Yes—but only when you have no open positions or pending orders. Active trades must be settled before changing modes.
Q: Does position mode affect leverage settings?
A: No. Leverage is configured separately within each position or account type. However, margin usage differs due to PnL offsetting in Hedged Mode under cross-margin.
Q: Is Hedged Mode better than One-Way Mode?
A: Not necessarily. Hedged Mode offers more flexibility and risk control but demands advanced skills. One-Way Mode is simpler and ideal for directional traders.
Q: Do both modes support all contract types?
A: Yes. Both modes work across USDT-margined, USD-margined, and coin-margined futures contracts on OKX.
Q: Will switching modes impact my trading fees?
A: No. Fee structure remains unchanged regardless of position mode selection.
Q: Can I use automation tools like grid bots in both modes?
A: Yes, though certain strategies perform better in specific modes. For example, mean-reversion bots often benefit from Hedged Mode’s dual-position capability.
Choosing the Right Mode for Your Strategy
Your choice depends heavily on your trading style and market outlook:
Use Hedged Mode if:
- You trade in high-volatility environments
- You want to hedge existing spot holdings
- You employ scalping or range-trading strategies
- You seek reduced liquidation risk through offsetting positions
Use One-Way Mode if:
- You follow strong trends (e.g., bull/bear markets)
- You’re new to futures trading
- You prefer clear entry/exit logic
- You aim for maximum exposure when conviction is high
Final Tips for Effective Position Management
- Always check your current mode before opening new trades—a mismatch could lead to unintended exposure.
- Use testnet or demo accounts to practice switching modes and simulating strategies.
- Monitor margin ratios closely, especially in isolated margin mode where PnL doesn’t auto-offset.
- Align your mode with your broader risk framework—don’t let convenience override sound strategy.
👉 Start applying these insights today—optimize your contract settings on OKX now.
By mastering position mode configuration on OKX, you gain greater control over your risk profile and capital efficiency. Whether you're a conservative hedger or an aggressive trend rider, selecting the right mode empowers smarter, more intentional trading decisions. Take time to experiment safely, and always prioritize education over haste in the fast-moving world of crypto derivatives.